Napster's assets swept up

Digital media software developer Roxio Thursday announced it has purchased the assets of file-swapping service Napster which filed for bankruptcy back in June for US$5.3m.

There has been much debate over what would happen to the failed Napster after media giant Bertelsmann's offer of US$9m was blocked by the bankruptcy court.

But although Roxio has taken on Napster's patent portfolio and other intellectual property rights, including its brand name, it's not taking on any of its legal liabilities. This means it won't have to face the barrage of pending lawsuits from the music industry over Napster's violation of copyright rules.

It is not yet clear what Roxio's plans are. In a press statement the company merely said it "will be announcing its plan for the development of Napster in the coming months".

Along with several of the major music labels, Roxio currently offers a subscription download service through Pressplay which means it will do well to stay on the right side of the copyright holders.

Napster received over one million users at its peak.

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Wendy Brewer

PC World
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